November 19, 2025 | 03:09 pm
TEMPO.CO, Jakarta - The improving financial statements of Kereta Cepat Indonesia China (KCIC) have yet to ease the management's worries. Even with an upward trend in operational performance, the cash flow of the Jakarta-Bandung high speed rail project, known as Whoosh, remains far from healthy. That issue drew the attention of several members of the House of Representatives' Commission VI, which oversees state-owned enterprises, during a visit to Tegalluar Station in Bandung Regency, West Java, on Friday, November 7, 2025.
Based on KCIC's presentation during the visit, the company's profit before interest, taxes, depreciation, and amortization (EBITDA) had turned positive as of September 2025. But Commission VI member Rieke Diah Pitaloka said the financial burden tied to Whoosh puts the company on the brink as expenses still far outstrip revenue.
"The company is able to cover its operating expenses of Rp1.4-1.5 trillion (around US$84-90 million) per year, but it still posts losses when factoring in debts of roughly Rp118 trillion (US$7 billion) with annual interest of Rp2 trillion (US$120 million)," she told Tempo on Tuesday, November 11.
According to Rieke, the core of the problem lies in the financial burden that has hung over the project since construction began. She said the high-speed rail was never built on solid planning. "There's an indication it was not based on an end-to-end design, but on a design-and-build trial-and-error model that carries high risks," she said. As a result, the cost structure ballooned and efficiency became difficult to achieve. KCIC's report to Commission VI shows that its projected cash flow will remain in deficit, amounting to Rp22.3 trillion (US$1.3 billion), over the next decade. At this pace, the company risks continued losses even after full operations.
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